This Is Why Weigang Environmental Technology Holding Group Limited's (HKG:1845) CEO Compensation Looks Appropriate

Key Insights

• Weigang Environmental Technology Holding Group will host its Annual General Meeting on 3rd of June
• Salary of CN¥531.0k is part of CEO Kaiyan Li's total remuneration
• The total compensation is 49% less than the average for the industry
• Weigang Environmental Technology Holding Group's EPS grew by 11% over the past three years while total shareholder loss over the past three years was 53%

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Shareholders may be wondering what CEO Kaiyan Li plans to do to improve the less than great performance at Weigang Environmental Technology Holding Group Limited (HKG:1845) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 3rd of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Weigang Environmental Technology Holding Group

Comparing Weigang Environmental Technology Holding Group Limited's CEO Compensation With The Industry

Our data indicates that Weigang Environmental Technology Holding Group Limited has a market capitalization of HK$149m, and total annual CEO compensation was reported as CN¥700k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥531.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Commercial Services industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.4m. This suggests that Kaiyan Li is paid below the industry median.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Although there is a difference in how total compensation is set, Weigang Environmental Technology Holding Group more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Weigang Environmental Technology Holding Group Limited's Growth

Weigang Environmental Technology Holding Group Limited's earnings per share (EPS) grew 11% per year over the last three years. Its revenue is down 4.7% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Weigang Environmental Technology Holding Group Limited Been A Good Investment?

The return of -53% over three years would not have pleased Weigang Environmental Technology Holding Group Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key focus for the board and management will be how to align the share price with fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Weigang Environmental Technology Holding Group you should be aware of, and 1 of them is potentially serious.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.